May 12, 2014 (LBO) – Profits at Sri Lanka’s Sampath Bank rose 21 percent from a year earlier to 1,2 billion rupees in the March 2014 quarter helped by loan loss reversal and other income while net interest income fell. The group reported earnings of 7.50 rupees per share for the quarter.
Group interest income fell 4.9 percent to 9.5 billion rupees from a year earlier and interest expenses fell at a slower 3.0 percent to 6.5 billion rupees making net interest income fall at a faster 8.7 percent to 3.0 billion rupees.
Fee and commission income rose 23 percent to 806 million rupees and other operating income rose 72 percent to 432 million rupees.
Loan loss 740 million rupees in general provisions were reversed with 296 million rupees in fresh provisions being made, resulting in net reversals of 542 million rupees, helping the bottom line. Last year 292 million in provisions were made.
Loans to customers fell to 256 billion rupees in March 2014 from 265 billion rupees in December. The bank cut its exposure to pawning or gold-backed loans to 44.8 billion rupees from 53.8 billion rupees during the quarter.
Deposits rose 3.8 percent to 311 billion rupees. Debt and other borrowed funds fell to 28 billi